Without Aadhaar No Loan to Farmers

National News

Business Mantra News

  • In terms of the Government of India’s Policy 2017-18, Reserve Bank of India has notified that No Farmer shall get Short Term Farm Loan without the production of Aadhaar Card.
  • The quantum of Short Term Farm Loan shall be maximum of Rs.3.00 Lakhs at a rate of interest of 7% pa under Interest Subvention Scheme.
  • If the Loan is repaid by the farmer before or within time frame, the rate of interest may further be reduced to 4% from 7% pa
  • Reserve Bank of India has offered an interest subvention of 2% to the Rural and Semi-Urban Branches of Banks.
  • Further interest subvention of 3% shall be available to those farmers, if the loan is repaid within scheduled time frame or earlier than the due date.
  • The interest subvention scheme shall also be available to the small and marginal farmers availing the facility of Kisan Credit Cards, for a further period of six months if the farm produce is stored in a warehouse against warehousing receipt.
  • The warehouse where the farm produce is to be kept has to be recognized by The Warehousing Development Regulatory Authority (WDRA)
  • In case of effect of natural calamity, a further interest subvention shall be made available to the Banks for further one year, but the same shall not be continued for second year.
  • The Banks need to take proper care of records as to loans of farmers, so that the genuine persons do not suffer due to lack of loan facility.

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